I can only tell you what I thought I needed a DAC for.
I chucked out all my 5.1 system (a Nakamichi receiver and 5 Mission speakers) and used the DAC for the DVD to my stereo amp, to start with. I then amplified my laptop via the DAC (before I had the DAC I never felt the need of amplifying whatever crap signal I was gonna get from its sound card). I use the DAC for my satellite receiver. I also use the DAC as a headphone amp for the CD player and all the other sources.
Now that's why I went out and bought one. Been ever so happy since
Eddie
Spendor S5e
AVI LSI
Musical Fidelity A5 CDP
B-DAC 7520